2014 budget crunch

2014 budget crunch – how will it affect you?

Fuel excise increase

Indexation of the fuel excise will increase it in line with inflation twice a year starting 1 August.

GP co-payment

Those who are bulked billed when they visit a general practitioner or get pathology or imaging services will pay $7 every time they go, capped at 10 visits for children under 16 or concession card holders. Those who pay for these services will now pay $5 more.

Medical research

A new fund will eventually see $20 billion for medical research.

Students

Deregulation of university and TAFE fees, decrease government funding

Caps on TAFE and university fees will be removed from 1 January 2016. The government's share of university funding will be reduced by an average of 20% at the same time (students will pick up the shortfall).

Loans to increase

HELP loans (currently linked to inflation, roughly 3%) will incur more interest, with a maximum rate of 6%, and students will have to start paying back HELP debt sooner.

Private colleges and TAFEs get more funding

The same funding and HECS loans are currently available to public university students will be available for private colleges and TAFEs.

Young families

Family tax benefit changes

Family Tax Benefit B will be cut for households where at least one parent earns over $100,000 or once the youngest child turns six. And both Family Tax Benefit A and B won't be indexed for two years.

Single parent supplement

Low income single parents with children aged between six and 12 will receive a one-off payment of $750 per year.

Paid parental leave scheme

Working primary carers will be eligible for six months of paid parental leave on full pay up to $100,000, meaning a maximum payment of $50,000.

Higher income earners

Deficit levy/tax

Higher income earners will pay a debt levy/tax of 2% for three years on earnings above $180,000.

Older Australians

Pension age raised to 70

The pension entitlement age will be increased to 70 from 2035, affecting anyone currently in their late forties or younger.

Pension indexation changes

Pension to be indexed to CPI rather than wage growth from 2017.

Employer incentives for hiring older Australians

Up to $10,000 in incentives over two years for those hiring eligible workers over the age of 50.